Which of the following formula elements is not used in calculating the accounting rate of return?
A) operating income.
B) a present value factor.
C) depreciation expense.
D)average investment.

Question

Quizplus · Accepted Answer

The accounting rate of return is calculated as the average operating income divided by the average investment. It does not involve the use of a present value factor. Therefore, option B is not used in calculating the accounting rate of return. Options A, C, and D are all used in the calculation process.

Which of the Following Formula Elements Is Not Used in Calculating